'Protect the Newcastle Steelworks': BHP, the Trade Unions and National Security 1939-1940

Abstract

five men by the Broken Hill Proprietary Company Limited (BHP) at its Newcastle Steelworks (the Steelworks) following the 1940 Miners' strike. These men were not re-employed because they were either trade union activists or members of the Communist Party of Australia (CPA). The directive to dismiss the communists originated from the Investigation Branch, a section of the Attorney-General's Department. Available evidence shows that the Investigation Branch was operating without authority from the Commonwealth government and that the information on which it based its decision to direct BHP to dismiss the communists was totally erroneous. After deciding that it would implement the directive, BHP decided it would also utilise the opportunity offered by the Investigation Branch to dismiss trade union activists. Following the dismissals and the outburst from the trade union movement, the Commonwealth government, because it had been informed of the activities of the Investigation Branch, closed ranks with BHP and thwarted all attempts by the trade unions to have the men reinstated. During the inter-war years BHP dominated every aspect of the struggle between capital and labour (hereafter referred to as the industrial struggle) at the Newcastle Steelworks. BHP had entered the industry with a proven record of anti-unionism. Throughout the 1920s, BHP enforced a vigorous industrial policy designed to protect company prerogatives, notably the right to hire and fire at will, and to restrict unionisation of its workforce. These, combined with continual unemployment, guaranteed a docile and subordinate workforce. Relations changed very little during the 1930s when the rate of unionisation rarely exceeded 30% of the total workforce. This in turn facilitated the Steelworks management's endeavours to circumvent trade union campaigns for improved working conditions and wage increases. The ease with which the Steelworks management was able to undermine the trade unions' campaigns was due, largely, to the unions' inability to form a united front. Inter-union and internecine conflict was rife among the trade unions throughout the inter-war years. During the 1920s, the Australian Workers' Union and the Federated Ironworkers' Association of Australia (FIA) were continually at loggerheads, while relations between the skilled and unskilled unions generally were strained. Relations did not improve during the 1930s. In fact the conflict reached its highest level during the second half of the decade. Despite these divisions the unions did register some gains, especially at Lysaght's Newcastle Works Limited (Lysaghts) and at the Commonwealth Steel Company (Commonwealth Steel), but nothing had changed at the Steelworks.2